alleryStart learning →Rs 10 shares bought back at Rs 12 from premium. The Rs 2 is debited to
AShare capital
BBank account
CCapital reserve
DSecurities premium
Answer & Solution
Correct answer: D. Securities premium
Premium over face value is absorbed by the securities premium account when that is the chosen source.
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Related questions
Under Section 68, specified securities includeAfter a buy-back, a remaining investor's proportionate ownershipThe details of the transfer to capital redemption reserve are to be disclosed in the40,000 shares of face value Rs 5 are bought back at Rs 9. Equity share capital is debited Which can absorb the premium paid on a buy-back?Shares that a company has bought back areWithin six months after a buy-back, a company may still make aThe register of bought back shares is kept at the company's